The largest carmaker in the world, Toyota, is about to phase out gasoline-only models in favor of a lineup that is dominated by hybrid cars in North America. This marks a significant change that will occur over three decades after the introduction of the Prius, the company’s iconic hybrid model. Two Toyota executives disclosed this strategic shift, which highlights the company’s commitment to a “multi-pathway” strategy that balances electric vehicles (EVs) with hybrids, fuel-cell vehicles that run on hydrogen, and maybe other cutting-edge technologies. David Christ, chief of sales and marketing for Toyota in North America, stated that the company plans to determine if it is feasible to switch every car line to hybrids, a move that may be spurred by model redesigns or earlier.
With this plan, Toyota may become the first established carmaker to stop producing conventional gasoline-only automobiles, even though the company has adopted fully electric vehicles more slowly than other manufacturers. With its 2026 makeover, the RAV4, the best-selling SUV in America, which currently accounts for almost half of its sales through hybrid variations, is probably going to discontinue its gasoline-only model. Similarly, starting with the 2025 model year, the Camry—America’s favorite sedan—will no longer be available as a gasoline-only choice.
Toyota is taking a calculated risk by gradually moving toward hybrid vehicles and may even release additional plug-in hybrid vehicles in response to the slow adoption of electric vehicles (EVs), which is largely due to their high cost and difficult charging. The company’s plug-in versions that can go considerable distances on battery power alone, as well as its hybrids that smoothly switch between gasoline and electric power without requiring external charging, are starting to gain popularity. As the 2027 model year approaches and U.S. emissions laws becoming more rigorous, Toyota may be able to save billions of dollars in regulatory costs by diversifying its hybrid lineup, which would also give the firm more time to improve its electric vehicle (EV) technology.
This strategy supports Toyota’s leading position in the hybrid market and is consistent with the industry’s overall trend toward more environmentally friendly car options. Toyota is committed to a diverse and ecologically sensitive future in automotive technology, as seen by its ongoing investment in hybrid technology, which includes a new battery plant in North Carolina. Toyota expects to convert around 30% of its global fleet to electric vehicles by 2030.
